Contact said the combination will make a stronger, more resilient electricity company for New Zealand with a more diversified generation portfolio across the North and South Islands.
The commission is scheduled to make its clearance decision by the end of March 2025, and Contact is still targeting scheme implementation by the end of June.
Jeremy Sullivan, investment adviser with Hamilton Hindin Greene, said the Commerce Commission has asked for more explanation and how the energy companies will mitigate its concerns.
“The chance of the takeover being approved has decreased but it’s still not out of the question,” Sullivan said.
SkyCity, up 3c or 2.14% to $1.43, told the market it will take delivery of the New Zealand International Convention Centre from the contractor Fletcher Building by the end of June – a little later than it wanted.
SkyCity will now begin taking bookings from February next year when the centre will open. Sky said the centre is a world-class facility that will transform the visitor and events economy in Aotearoa.
Sullivan said the update removes the uncertainty over when the centre will be completed and SkyCity wanted a buffer to get it ready and up and running.
Fletcher Building increased 9c or 3.15% to $2.95.
Pole monitoring company ikeGPS surged 20c or 32.26% to 82c after rejecting an unsolicited takeover bid from an undisclosed party. Following due diligence, ikeGPS said the final offer of $1 per share – representing an enterprise value of $165m-$170m – had no realistic chance of securing sufficient support from shareholders.
Sullivan said when a takeover bid gets quashed the share price usually goes down rather than up but the $1 a share wasn’t enough for ikeGPS.
Infratil, under selling pressure lately, rebounded 26c or 2.38% to $11.17; Fisher and Paykel Healthcare gained 55c to $35.15; Meridian Energy collected 6.5c to $5.91; Port of Tauranga was up 10c to $6.53; Turners Automotive increased 13c or 2.34% to $5.68; and Tower added 3.5c or 2.58% to $1.39.
The dual-listed banks had a strong day, with ANZ rising $1.11 or 3.33% to $34.41 and Westpac up 75c or 2.03% to $37.75. Heartland Group gained 2c or 1.79% to $1.14.
NZME was up 3c or 2.86% to $1.08; Foley Wines gained 2c or 3.57% to 58c; Scott Technology collected 6c or 2.88% to $2.14; and AoFrio increased 0.006c or 6.19% to 10.3c.
Investore was down 3c or 2.61% to $1.12; Sanford fell 18c or 3.82% to $4.53; Air New Zealand declined 1.25c or 1.97% to 62.25c; and Third Age Health fell 9c or 3.23% to $2.70, despite reporting a 57.2% increase in net profit to $701,000 for the third quarter ending December.
The Warehouse shed 2c or 1.92% to $1.02; Eroad declined 2c or 1.89% to $1.04; Blackpearl Group fell 9c or 10.11% to 80c; and Promisia Healthcare was down 4c or 10% to 36c.
Channel Infrastructure, down 1c to $1.94, said it is expecting a revaluation gain of $375m for the financial year ending December – an increase of $270m to $1.1 billion for its fuel import terminal and $105m to $120m for its surplus land at Marsden Point. Channel’s net tangible assets would increase 73c per share.
Hospitality group Savor, unchanged at 21c, has experienced improved trading with revenue for the year to December narrowing to 5% below the previous year – an improvement to the 8% lower for the year to August. Revenue for December was within 1% of the same month in the previous year.
Savor is closing the MoVida restaurant and Bar Non Solo after exiting the Auckland Seafarers Building lease early and is taking up a new lease in the Britomart precinct for its latest entertainment offering expected to open later this year.
